Benefits are rising faster than salaries

Jobseeker’s allowance has increased by 20% since 2007, while salaries have only risen by an average of 12%.

13:40 03 January 2013

Looking at the statistics, Work and Pension Secretary Iain Duncan Smith could not be more right when he said that the system is not fair on workers. According to records, out-of-work benefits have increased by 20per cent since 2007, while salaries increased by just 12%.

Mr. Duncan Smith said that the system, in which benefits increased automatically by the rate of inflation, proved to be unfair for those people holding jobs and who are helping to fund others.

Because of this, reportedly ministers are planning to reform the system and are thinking of imposing a 1per cent cap on out-of-work benefit increase for the next three years. However, Labour begs to disagree.

 

Mr Duncan Smith said yesterday: “Working people across the country have been tightening their belts after years of pay restraint while at the same time watching benefits increase. That is not fair.

 

“The welfare state under Labour effectively trapped thousands of families into dependency as it made no sense to give up the certainty of a benefit payment in order to go back to work.”